Delta Air Says Yen Drop Damps Unit Sales for Fourth MonthLeslie Picker and Mary Jane Credeur
Delta Air Lines Inc., which derived 11 percent of sales from the Pacific region last year, said a weak yen has curbed unit revenue for the fourth month in a row.
Revenue for each seat flown a mile rose 1 percent in June, as gains in the trans-Atlantic and Latin American regions were partially offset by the yen’s devaluation, according to a statement today.
The Japanese currency, weakened by unprecedented monetary easing, has pressured Delta’s unit revenue every month since March, according to the last four monthly statements from the Atlanta-based company. The yen has slumped about 14 percent against the U.S. dollar in 2013 as Prime Minister Shinzo Abe pledged to reverse more than 10 years of deflation. Abenomics, as the current policies are known, have been cutting into sales of multinational companies exporting to the region.
Delta fell 1.9 percent to $18.99 at the close in New York. The shares have rallied 60 percent this year, surpassing a 38 percent gain in the Bloomberg U.S. Airlines Index.